GAAP revenue for the company increased 1 percent to $1.40 billion in the
third quarter compared to the prior year period, with 3 percent growth
in the Payments segment and 1 percent decline in the Financial segment.
For the first nine months of 2017, GAAP revenue increased 3 percent to
$4.18 billion versus the same period last year, with 4 percent growth in
the Payments segment and 2 percent growth in the Financial segment. GAAP
revenue growth in 2017 included the effects of acquisitions and the
divestiture of the company’s Australian item processing business in May.

GAAP earnings per share was $1.08 in the third quarter and $3.23 in the
first nine months of 2017, increasing 13 percent and 2 percent,
respectively, compared to the prior year periods. GAAP earnings per
share included net investment gains of $0.09 per share and $0.39 per
share in the first nine months of 2017 and 2016, respectively, driven by
the disposition of a business and a business interest at StoneRiver
Group, L.P. ("StoneRiver"), a joint venture in which the company owns a
49 percent interest. GAAP earnings per share in 2017 included a benefit
related to excess tax benefits recorded from the exercise of share-based
compensation awards.

GAAP operating margin was 26.5 percent in both the third quarter and
first nine months of 2017, decreasing 30 basis points and increasing 20
basis points, respectively, compared to the prior year periods.

Net cash provided by operating activities was $1.02 billion in the first
nine months of 2017 compared with $1.04 billion in the prior year
period. Net cash provided by operating activities included cash
distributions from StoneRiver of $44 million and $140 million in the
first nine months of 2017 and 2016, respectively.

"Fiserv continued to execute well, delivering double-digit adjusted
earnings per share growth despite pressure from lower periodic revenue
in the quarter," said Jeffery Yabuki, President and Chief Executive
Officer of Fiserv. "Sales were solid in the quarter, providing momentum
for a strong close to the year."

Third Quarter 2017 Non-GAAP Results and Additional Information

Adjusted revenue increased 2 percent to $1.34 billion in the third
quarter and 3 percent to $3.98 billion in the first nine months of
2017 compared to the prior year periods.

Internal revenue growth for the company was 2 percent in the third
quarter, driven by 3 percent growth in the Payments segment. Financial
segment internal revenue growth in the quarter was flat compared to
the prior year period.

Internal revenue growth for the company was 3 percent in the first
nine months of 2017, with 4 percent growth in the Payments segment and
2 percent growth in the Financial segment.

Adjusted earnings per share increased 11 percent to $1.27 in the third
quarter and 13 percent to $3.71 in the first nine months of 2017
compared to the prior year periods.

Adjusted operating margin decreased 20 basis points to 32.6 percent in
the third quarter and increased 20 basis points to 32.4 percent in the
first nine months of 2017 compared to the prior year periods.

Free cash flow increased 10 percent to $819 million in the first nine
months of 2017 compared to the prior year period. Cash distributions
from StoneRiver of $44 million were not included in the company's free
cash flow results for the first nine months of 2017.

The company repurchased 2.4 million shares of common stock for $298
million in the third quarter and 8.3 million shares of common stock
for $983 million in the first nine months of 2017. As of September 30,
2017, the company had 12.2 million remaining shares authorized for
repurchase.

The company completed three acquisitions during the quarter:

In July, the company acquired the assets of PCLender, LLC, a
leader in next-generation internet-based mortgage software and
mortgage lending technology solutions, to enhance the company's
suite of mortgage origination services.

In August, the company acquired Dovetail Group Limited, a leading
provider of bank payments and liquidity management solutions, to
further enable the company to help financial institutions around
the world transform their payments infrastructure.

In September, to expand its digital leadership, the company
completed its acquisition of Monitise plc, a provider of digital
solutions that enable innovative digital banking experiences for
leading financial institutions worldwide.

Outlook for 2017

For the full year, Fiserv expects internal revenue growth of 4 percent
and adjusted earnings per share in a range of $5.05 to $5.12, which
represents growth of 14 to 16 percent over adjusted earnings per share
of $4.43 in 2016.

The company will discuss its third quarter 2017 results on a conference
call and webcast at 4 p.m. CT on Tuesday, October 31, 2017. To register
for the event, go to Fiserv.com
and click on the Q3 Earnings webcast link. Supplemental materials will
be available in the "Investor Relations" section of the website.

About Fiserv

Fiserv, Inc. (NASDAQ: FISV) enables clients worldwide to create and
deliver financial services experiences that are in step with the way
people live and work today. For more than 30 years, Fiserv has been a
trusted leader in financial services technology, helping clients achieve
best-in-class results by driving quality and innovation in payments,
processing services, risk and compliance, customer and channel
management, and insights and optimization. Fiserv is a member of the
FORTUNE® 500 and has been named among the FORTUNE Magazine
World's Most Admired Companies® for four consecutive years,
ranking first in its category for innovation in 2016 and 2017. For more
information, visit Fiserv.com.

Use of Non-GAAP Financial Measures

In this earnings release, the company supplements its reporting of
information determined in accordance with GAAP, such as revenue,
operating income, operating margin, net income, earnings per share and
net cash provided by operating activities, with "adjusted revenue,"
"internal revenue growth," "adjusted operating income," "adjusted
operating margin," "adjusted net income," "adjusted earnings per share"
and "free cash flow." Management believes that adjustments for certain
non-cash or other items and the exclusion of certain pass-through
revenue and expenses enhance shareholders' ability to evaluate the
company's performance as such measures provide additional insights into
the factors and trends affecting its business. Therefore, the company
excludes these items from GAAP revenue, operating income, operating
margin, net income, earnings per share and net cash provided by
operating activities to calculate these non-GAAP measures. The
corresponding reconciliations of these non-GAAP financial measures to
the most comparable GAAP measures are included in this earnings release,
except for forward-looking measures where a reconciliation to the
corresponding GAAP measures is not available due to the variability,
complexity and low visibility of the non-cash and other items described
below that are excluded from the non-GAAP outlook measures. See page 12
for additional information regarding the company's forward-looking
non-GAAP financial measures.

Examples of non-cash or other items may include, but are not limited to,
non-cash deferred revenue adjustments arising from acquisitions,
non-cash intangible asset amortization expense associated with
acquisitions, non-cash impairment charges, gains or losses from
dispositions and unconsolidated affiliates, severance costs, merger and
integration costs related to acquisitions, and certain costs associated
with the achievement of the company's operational effectiveness
objectives. The company excludes these items to more clearly focus on
the factors management believes are pertinent to its operations, and
management uses this information to make operating decisions, including
the allocation of resources to the company's various businesses.

Internal revenue growth and free cash flow are non-GAAP financial
measures and are described on page 11. Management believes internal
revenue growth is useful because it presents revenue growth excluding
the effects of acquisitions and dispositions and the impact of postage
reimbursements in the company's Output Solutions business, and including
deferred revenue purchase accounting adjustments. Management believes
free cash flow is useful to measure the funds generated in a given
period that are available for debt service requirements and strategic
capital decisions. Management believes this supplemental information
enhances shareholders' ability to evaluate and understand the company's
core business performance.

These non-GAAP measures may not be comparable to similarly titled
measures reported by other companies and should be considered in
addition to, and not as a substitute for, revenue, operating income,
operating margin, net income, earnings per share and net cash provided
by operating activities or any other amount determined in accordance
with GAAP.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding anticipated internal revenue growth,
adjusted earnings per share and adjusted earnings per share growth.
Statements can generally be identified as forward-looking because they
include words such as "believes," "anticipates," "expects," "could,"
"should" or words of similar meaning. Statements that describe the
company's future plans, objectives or goals are also forward-looking
statements. Forward-looking statements are subject to assumptions, risks
and uncertainties that may cause actual results to differ materially
from those contemplated by such forward-looking statements. The factors
that may affect the company’s results include, among others: pricing and
other actions by competitors; the capacity of the company's technology
to keep pace with a rapidly evolving marketplace; the impact of market
and economic conditions on the financial services industry; the impact
of a security breach or operational failure on the company's business;
the effect of legislative and regulatory actions in the United States
and internationally; the company's ability to comply with government
regulations;the company's ability to successfully identify,
complete and integrate acquisitions, and to realize the anticipated
benefits associated with the same; the impact of the company's strategic
initiatives; and other factors included in the company's filings with
the SEC, including its Annual Report on Form 10-K for the year ended
December 31, 2016 and in other documents that the company files with the
SEC. You should consider these factors carefully in evaluating
forward-looking statements and are cautioned not to place undue reliance
on such statements. The company assumes no obligation to update any
forward-looking statements, which speak only as of the date of this
press release.

Fiserv, Inc.

Condensed Consolidated Statements of Income

(In millions, except per share amounts, unaudited)

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Revenue

Processing and services

$

1,199

$

1,160

$

3,563

$

3,441

Product

201

220

617

633

Total revenue

1,400

1,380

4,180

4,074

Expenses

Cost of processing and services

572

551

1,715

1,651

Cost of product

174

186

531

547

Selling, general and administrative

284

274

837

806

Gain on sale of business

—

—

(10

)

—

Total expenses

1,030

1,011

3,073

3,004

Operating income

370

369

1,107

1,070

Interest expense

(45

)

(41

)

(131

)

(121

)

Interest and investment income (loss) - net

—

—

2

(7

)

Income before income taxes and income from investment in
unconsolidated affiliate

325

328

978

942

Income tax provision

(98

)

(114

)

(309

)

(373

)

Income from investment in unconsolidated affiliate

5

—

31

146

Net income

$

232

$

214

$

700

$

715

GAAP earnings per share - diluted

$

1.08

$

0.96

$

3.23

$

3.18

Diluted shares used in computing earnings per share

214.5

222.7

216.7

225.2

Earnings per share is calculated using actual, unrounded amounts.

Fiserv, Inc.

Reconciliation of GAAP to

Adjusted Net Income and Adjusted Earnings Per Share

(In millions, except per share amounts, unaudited)

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

GAAP net income

$

232

$

214

$

700

$

715

Adjustments:

Merger, integration and other costs 1

23

18

52

41

Severance costs

3

3

22

11

Amortization of acquisition-related intangible assets

39

39

117

119

Tax impact of adjustments 2

(21

)

(21

)

(63

)

(60

)

StoneRiver and other investment activity 3

(5

)

—

(31

)

(139

)

Tax impact of StoneRiver and other investment activity 2

2

—

11

52

Gain on sale of business 4

—

—

(10

)

—

Tax impact of gain on sale of business 2

—

—

5

—

Adjusted net income

$

273

$

253

$

803

$

739

GAAP earnings per share

$

1.08

$

0.96

$

3.23

$

3.18

Adjustments - net of income taxes:

Merger, integration and other costs 1

0.07

0.05

0.16

0.12

Severance costs

0.01

0.01

0.07

0.03

Amortization of acquisition-related intangible assets

0.12

0.11

0.36

0.34

StoneRiver and other investment activity 3

(0.01

)

—

(0.09

)

(0.39

)

Gain on sale of business 4

—

—

(0.02

)

—

Adjusted earnings per share

$

1.27

$

1.14

$

3.71

$

3.28

1

Merger, integration and other costs include acquisition and related
integration costs of $30 million in 2017 and $29 million in 2016,
and certain costs associated with the achievement of the company's
operational effectiveness objectives of $22 million in 2017 and $12
million in 2016, including expenses related to data center
consolidation activities.

2

The tax impact of adjustments is calculated using tax rates of 33
percent and 35 percent in 2017 and 2016, respectively, which
approximates the company's annual effective tax rate for the
respective years, exclusive of the actual tax impacts associated
with StoneRiver transactions and the gain on sale of business.

3

Represents the company's share of net gains on the disposition of a
business and a business interest at StoneRiver, as well as a
non-cash write-off of a $7 million investment in 2016.

4

Represents the gain on the sale of the company's Australian item
processing business.

See page 3 for disclosures related to the use of non-GAAP financial
measures.

Earnings per share is calculated using actual, unrounded amounts.

Fiserv, Inc.

Financial Results by Segment

(In millions, unaudited)

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Total Company

Revenue

$

1,400

$

1,380

$

4,180

$

4,074

Output Solutions postage reimbursements

(65

)

(72

)

(204

)

(221

)

Deferred revenue purchase accounting adjustments

2

2

4

4

Adjusted revenue

$

1,337

$

1,310

$

3,980

$

3,857

Operating income

$

370

$

369

$

1,107

$

1,070

Merger, integration and other costs

23

18

52

41

Severance costs

3

3

22

11

Amortization of acquisition-related intangible assets

39

39

117

119

Gain on sale of business

—

—

(10

)

—

Adjusted operating income

$

435

$

429

$

1,288

$

1,241

Operating margin

26.5

%

26.8

%

26.5

%

26.3

%

Adjusted operating margin

32.6

%

32.8

%

32.4

%

32.2

%

Payments and Industry Products ("Payments")

Revenue

$

796

$

772

$

2,369

$

2,284

Output Solutions postage reimbursements

(65

)

(72

)

(204

)

(221

)

Deferred revenue purchase accounting adjustments

2

1

4

2

Adjusted revenue

$

733

$

701

$

2,169

$

2,065

Operating income

$

253

$

241

$

750

$

703

Merger, integration and other costs

1

1

3

2

Adjusted operating income

$

254

$

242

$

753

$

705

Operating margin

31.7

%

31.2

%

31.6

%

30.8

%

Adjusted operating margin

34.6

%

34.4

%

34.7

%

34.1

%

Financial Institution Services ("Financial")

Revenue

$

619

$

623

$

1,862

$

1,834

Deferred revenue purchase accounting adjustments

—

1

—

2

Adjusted revenue

$

619

$

624

$

1,862

$

1,836

Operating income

$

204

$

209

$

614

$

606

Operating margin

33.1

%

33.5

%

33.0

%

33.1

%

Adjusted operating margin

33.1

%

33.5

%

33.0

%

33.0

%

Corporate and Other

Revenue

$

(15

)

$

(15

)

$

(51

)

$

(44

)

Operating loss

$

(87

)

$

(81

)

$

(257

)

$

(239

)

Merger, integration and other costs

22

17

49

39

Severance costs

3

3

22

11

Amortization of acquisition-related intangible assets

39

39

117

119

Gain on sale of business

—

—

(10

)

—

Adjusted operating loss

$

(23

)

$

(22

)

$

(79

)

$

(70

)

See page 3 for disclosures related to the use of non-GAAP financial
measures.

1 Internal revenue growth is measured as the increase
in adjusted revenue (see page 8) for the current period excluding
acquired revenue and revenue attributable to dispositions, divided
by adjusted revenue from the prior year period excluding revenue
attributable to dispositions. In the third quarter of 2017,
acquired revenue was $12 million ($9 million in the Payments
segment and $3 million in the Financial segment), and revenue in
the comparable prior year period attributable to dispositions was
$8 million (all in the Financial segment). During the first nine
months of 2017, acquired revenue was $30 million ($23 million in
the Payments segment and $7 million in the Financial segment), and
revenue in the comparable prior year period attributable to
dispositions was $20 million (all in the Financial segment).

Free Cash Flow

Nine Months EndedSeptember 30,

2017

2016

Net cash provided by operating activities

$

1,015

$

1,042

Capital expenditures

(208)

(223)

Adjustments:

Severance, merger and integration payments

65

39

StoneRiver cash distributions

(44)

(140)

Other

(3)

4

Tax payments on adjustments

(6)

25

Free cash flow

$

819

$

747

See page 3 for disclosures related to the use of non-GAAP
financial measures.

Fiserv, Inc.Forward-Looking Non-GAAP Financial Measures

Internal Revenue Growth - The company's internal revenue growth
outlook for 2017 excludes the effects of acquisitions and dispositions
and the impact of postage reimbursements in its Output Solutions
business, and includes deferred revenue purchase accounting adjustments.
These adjustments are subject to variability and are anticipated to
impact 2017 revenue growth by less than 1 percent.

Adjusted Earnings Per Share - The company's adjusted earnings per
share outlook for 2017 excludes certain non-cash or other items to
enhance shareholders' ability to evaluate the company's performance as
such measures provide additional insights into the factors and trends
affecting its business. Non-cash or other items may be significant and
include, but are not limited to, non-cash deferred revenue adjustments
arising from acquisitions, non-cash intangible asset amortization
expense associated with acquisitions, non-cash impairment charges, gains
or losses from dispositions and unconsolidated affiliates, severance
costs, merger and integration costs related to acquisitions, and certain
costs associated with the achievement of the company's operational
effectiveness objectives. The company estimates that the annual
amortization expense for 2017 with respect to acquired intangible assets
recorded at September 30, 2017 will approximate $160 million. Other
adjustments to earnings per share that have been incurred to date are
presented on page 7. Estimates of these other adjustments on a
forward-looking basis are not available due to the variability,
complexity and low visibility of these items.

See page 3 for disclosures related to the use of non-GAAP financial
measures.